Daily Insight: Tuesday 5 February 2019: Regulatory Impact: Business Jet Retirements on 1/1/2020

News

-Two regulatory requirements, the first for ADSB-out, which costs about $90,000, and the second an Airworthiness Directive (2012-17-05) for the Honeywell TFE731-4 and -5 engines, which will cost about $350,000, will result in an estimated 700 older business jets likely retiring on 1/1/2020.

Analysis

The Honeywell TFE731-4 and -5 were popular engines, powering certain Cessna, Dassault, and Hawker business jets.  With two engines per airplane plus ADSB, the cost of compliance is about $790,000 per aircraft.  For a number of older models, that is as high as or close to the value of the aircraft.  Essentially, the economics make the aircraft beyond economic repair.